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Hon Hai's Q4 net profit dips as smartphone demand slows

[TAIPEI] Taiwan's tech giant Hon Hai said net profit dipped in the fourth quarter, hit by a slowdown in demand for smartphones as key customer Apple warns waning sales of its iPhone.

Net income in October-December fell 6.67 per cent to TW$52.9 billion (S$2.2 billion) while revenue slipped 4.69 per cent, the company said in a statement Wednesday.

Hon Hai - also known as Foxconn, the world's biggest contract electronics maker - announced the earnings late Wednesday after sealing a US$3.5 billion takeover of ailing Japanese electronics firm Sharp.

While it enjoyed a 12.51 per cent rise in full-year profit to TW$146.8 billion, the drop in sales in the last three months reflected a slowdown at Apple, which saw the slowest sales growth ever of iPhones in the same period and warned of a decline in the current quarter.